Now this is perfect.
Moderate pullback in US equity markets yesterday, despite what’s generally perceived as a positive tone for 3Q results so far, suggests bottom-line improvements are already well-priced in to stocks at this point. Markets seem priced for perfection, not only in terms of earnings, but also on positive progress in economic data.
High-profile profit reports coming this morning from Boeing, Morgan Stanley and Wells Fargo. EBay reports after the closing bell.Investors were pleased with Yahoo’s 3Q report late yesterday, shares up 3.9% premarket.
US dollar index slipping, oil futures also lower, disconnecting from their inverse tack from dollar. S&P futures down 5.6, DJ futures down 49. Ten-year slightly lower, yield at 3.35%.
Looks like Boeing’s going to weigh on the Dow for a second day. Yesterday, Morgan Stanley downgraded the company, on concerns over the potential for even more delays with its new planes. Today, Boeing reported a 3Q loss on charges (previously disclosed) from those delays.
And while the big banks are all playing the same tune, earnings reports from Bank of NY Mellon and Regions Financial, among other regional banks, continue to illustrate that “the credit challenges these firms face are not offset by other income sources and are not improving meaningfully yet,” analysts at JPM say.
(Kellie Geressy-Nilsen contributed to this post.)